China's finance ministry said on Friday it would reduce or cancel export tax rebates for a wide range of commodities and other products, effective Dec. 1.

Aluminum jumped alongside all other industrial metals, after China canceled a tax rebate on exports of certain commodities.

Shares of Alcoa and Century Aluminum rose after China's finance ministry said it would cancel its export-tax rebate for aluminum. In midday trading Friday, Alcoa's stock was up 8.6%, while Century Aluminum jumped 10%.

China is ending its export tax rebate policy for aluminum and copper, while lowering it for some refined oil and battery products as overcapacity concerns have grown among global trading partners.

In the near term, the cancellation of rebates will make Chinese aluminium more expensive on the international market and could lead to a reduction in export volumes. Chinese aluminium exports have surged over the past two decades. In the first half of 2024, they rose 13% year-on-year.

Aluminum soared as China announced it was removing a tax rebate that covers over 5 million tonnes of exports of the metal. Futures in London jumped as much as 8.5% following the announcement from the country’s Ministry of Finance, which didn’t give a reason for the change.

Aluminum jumped on Friday after China said it would cancel a tax rebate that’s helped fuel a decades-long boom in exports and shielded an industry prone to overcapacity.

Alcoa (NYSE:AA) +7.8% and Century Aluminum (CENX) +4.2% pre-market Friday as prices for aluminum and other industrial metals jumped after China canceled a tax rebate on exports of certain commodities.